XP POWER (XPP) £36.80

Gain to date: 52.6%

Original entry point:

Buy at £24.11, 6 July 2017

Another upbeat trading update from XP Power (XPP) makes it a hat-trick of positive updates since our original feature back in July 2017. Right now the stock stands at £36.80, roughly 53% up on the £24.11 level at which we flagged it.

Orders for the power switching tools that the company designs have continued to flood in for the year to 31 December 2017. That tots up to £184.3m over the 12 months, 38% more than in 2016, or 31% if accounting for currency oscillations.

XP Power’s outperformance will be impressive. Forecasts in July for 2017 were pitched at £151m revenue and pre-tax profit of £31.2m respectively. What looks very likely is something closer to £35.3m pre-tax profit on £167m of sales, for double-digit outperformance.

In the meantime, the outfit has paid out handsome quarterly dividends of 16p (12 October 2017) and 18p on 11 January 2018, and will hand out another payout of at least 28p per share for the final quarter. Those three payments alone work out at a 2.6% income yield, another important part of the overall total returns story we previously outlined.

‹ Previous2018-01-18Next ›